Penny stock below Re 1: NBFC stock hits upper circuit on deployment of ₹209 crore

Standard Capital Markets share price was locked in at 5% upper circuit at ₹0.68 apiece on BSE Wednesday after the Non-Banking Financial Company (NBFC) announced the additional deployment of ₹209 crore to enhance its operations.

Standard Capital Markets announced an additional deployment of ₹209 crore towards its operations, complementing the earlier deployment of ₹201 crore.

“This additional investment is a key part of the company’s strategic initiatives, following the successful issuance of ₹5 billion in Non-Convertible Debentures (NCDs). Having raised and allocated ₹5 billion, Standard Capital Markets is leveraging these funds to further strengthen its operational infrastructure, thereby positioning itself for increased returns in the upcoming quarter and enhancing its overall profitability,” Standard Capital Markets said in a regulatory filing on March 4.

Key Focus Areas of the Deployment

According to the company’s statement, it will deploy the capital into three focus areas, including enhancement of operational efficiency, capacity expansion and growth and profitability.

“A portion of the funds has been allocated to scaling up existing operations, ensuring the company is well-equipped to handle future growth and market demand. With an increased focus on strategic investments, this deployment aims to foster long-term growth while maximizing profitability for the benefit of shareholders and stakeholders alike,” it said.

The company remains focused on expanding its market share, enhancing its service offerings, and ensuring sustained profitability in the competitive NBFC and Financial sector, it added.

“The additional ₹2.09 billion deployment is expected to play a pivotal role in driving operational success, scaling the company’s capacity, and ensuring robust growth in the upcoming quarters,” Standard Capital Markets said.

Standard Capital Markets Stock Price Trend

Standard Capital Markets share price has declined 25% in one month and has dropped over 30% on a year-to-date (YTD) basis. The small-cap penny stock has fallen 56% in the six months and more than 74% in the past one year.

However, Standard Capital Markets stock price has delivered multibagger returns of 750% in three years and a staggering 1260% return in five years.

At 10:30 AM, Standard Capital Markets shares were still locked at 5% upper circuit at ₹0.68 apiece on the BSE.

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